Mr. McCarthy stated that the investigation will focus on “allegations of abuse of power, obstruction, and corruption” by Mr. Biden.
Since taking control of the House in January, Republicans have been probing the president.
The panels found no clear proof of Mr Biden’s misbehavior.
They have, however, given additional light on the president’s son Hunter Biden’s business operations, which Republicans think are problematic, as well as Mr Biden’s awareness of his son’s activities.
Mr McCarthy said in a brief address at the US Capitol that there were “serious and credible” claims about the president’s behavior.
“Taken together, these allegations paint a picture of a culture of corruption,” he stated.
Mr McCarthy’s move was swiftly condemned by the White House.
“House Republicans have been investigating the President for nine months and have found no evidence of wrongdoing,” White House spokeswoman Ian Sams stated on Twitter.
“Extreme politics at its worst.”
Live updates: The White House condemns the impeachment investigation.
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Hunter Biden’s problems and controversies
Hunter Biden is now being investigated by the IRS for alleged tax evasion due to his international business holdings.
Mr McCarthy, a California politician, also said that Biden administration officials probing charges of impropriety gave the president’s family preferential treatment.
This investigation will give congressional investigators broader legal authority to examine the president, including the ability to issue subpoenas for records and testimony that can be readily enforced in court.
McCarthy’s media caption: ‘President Biden lied to the American people.’
According to the US Constitution, a president may be impeached for “treason, bribery, or other high crimes or misdemeanors.”
The declaration on Tuesday is the first step in a process that might lead to an impeachment vote in the House, where Republicans have a slim 222-212 majority.
It would then continue to a Senate trial, which is a political, not a criminal, proceeding.
The president is removed from office if the Senate votes guilty. They may continue to serve if it votes not guilty.
Democrats control the Senate and would almost probably kill the proceedings if they got that far.
Mr Trump, the first US president to be impeached twice, was acquitted both times by his Republican colleagues.
Watch this video to see why Hunter Biden is so crucial to Republicans.
Mr McCarthy, who heads Republicans in the House as Speaker, has been pressured for weeks by right-wing members to launch an impeachment investigation.
Florida Congressman Matt Gaetz, a strong supporter of former President Donald Trump, described the statement as “a baby step following weeks of pressure from House conservatives to do more.”
Mr McCarthy is presently attempting to shepherd a series of budget bills through the House – laws that must be passed by Congress by the end of September in order to avert a partial government shutdown in the United States.
Mr McCarthy’s decision to support impeachment might be interpreted as a ploy to gain the support of right-wing House Republicans ahead of the budget debates.
However, such an approach is fraught with danger. Centrist Republicans in vulnerable districts are concerned that a robust impeachment campaign will alienate the independent and moderate voters who helped them win.
Democrats are already pointing out that Mr McCarthy chastised Democratic leader Nancy Pelosi in 2019 for announcing an impeachment investigation into Mr Trump without conducting a formal vote.
While Mr McCarthy has simply stated that he approves an impeachment probe at this time, demand will mount for a formal authorizing vote in the House to establish the rules for impeachment hearings.
A vote like this would put those centrists on the record – and give ammunition for Democratic attacks during the general election in November 2024.
However, it is a concern for Mr McCarthy in the next year. For the time being, he is attempting to dissuade rebellious conservative members of Congress from publicly defying him and demanding a vote on whether to remove him from his leadership position.
Impeachment, or at least a start toward it, might provide him with the political breathing room he needs to survive the next months.